Promoted Feature: Fail to Prepare, Prepare to Fail | Intel EGR
Pinnacle Solution’s Sam Wright explains why focusing on the fundamentals is the fastest route to sports betting success in the face of the unexpected
The past few years have brought an unparalleled level of uncertainty to our industry. The initial hit of the pandemic, cost pressures that increase M&A activity, and regulatory issues affecting marketing processes are just some of the challenges facing the gambling and sports betting industries. have been faced, and the final games are yet to be played.
Any mature market or industry has to deal with these foreseen and unforeseen problems. Times change, events happen and tastes evolve. In our case, advertising regulations have made it more difficult to directly access broader markets, Covid-19 has changed the betting habits of large cohorts of our customer bases, and new ways of consuming entertainment have affected when and how our customers like to bet. .
Of course, we’ve seen these threats all the way, except for the pandemic where we’ve seen a collective spirit adapt and succeed in the face of one of the darkest periods in recent sports betting history. Most of us have solutions, some work better than others, and are putting strategies and plans in place to deal with the changing behavioral and regulatory environments we encounter. And it has to be said that being ahead of the game has allowed most to weather the storm and adapt successfully.
Prevent or cure?
There is a danger, however, that we are always looking for completely new solutions to potential problems or add-ons to add potential value to our betting offerings. Taking new routes to market and introducing new products can be risky; dealing with unknowns in times of uncertainty is not always relevant, particularly when performance gains can often be found closer to home, at both lower risk and lower cost.
Getting your own house in order, realizing its potential based on current resources and market position, can lay the foundation for future growth, while meeting the performance demands we all want now.
When it comes to sports betting, chasing untapped audiences to generate additional revenue streams should be an ongoing goal, but we would say that looking to maximize potential revenue – which is already at hand – by optimizing strategies Player profiling is a faster route to long-term gains.
There is a growing backlash in betting circles against operators with cumbersome staking processes, so from a brand and risk perspective, we should all be looking for more nimble ways to give punters a fairer deal, while realizing the revenues that are too often diverted at source.
Likewise, new betting marketplaces and betting request products are now in vogue as a way to engage with the young and digital native demographic. Along with this, there is a growing understanding of the business process, which social media has certainly helped develop. Odds comparisons are widely available and used, and statistics and analysis increasingly underpin the decisions of these bettors, so getting the right odds on the major markets and looking authentic can be the tool to set you apart. to this more demanding public.
Seeing the same ballpark prices repeatedly across 1X2 markets as the Premier League kicks off at 3pm must be disappointing for those looking to find value to reflect their research. Seeing homogenous prices so prevalent discourages customers; they can feel insignificant if they perceive the bookmakers as a cartel on an arbitrary position in the middle market. Instead, acting more independently on direct liabilities can not only ensure that your risk is optimized, but it also means that your outstanding prices will be followed by more eyeballs, generating additional revenue.
Optimize as much as possible
In this age of uncertainty, it is clear that we must adapt. But that doesn’t always mean chasing after the new. It is now more important than ever to control what we have power over. Keeping our own product business streamlined by delivering cost savings, capitalizing on the potential of existing customers, and maximizing the retention of these additional revenues should be the highest priority.
That’s not to say we shouldn’t be ambitious in delivering new technologies and better targeted marketing campaigns, but without being ruthless on the fundamental KPIs of the sports betting operation, we will take a longer and more slow to a destination much closer to home. It’s not a stubborn attitude that puts innovation aside; instead, we complement innovation by realizing the potential of the functions we already have in-house, particularly in risk management.
There are no quick fixes to improve risk management and trading processes, and this requires full buy-in from those dictating trading strategy. But as a means of maximizing revenue already at hand, ensuring best practices across relevant departments can be a game-changer, both in the short and long term, while the secondary marketing benefits that come from unique pricing and a best bettor treatment should not be underestimated.
Whether it’s the Super Bowl or a midweek League of Legends game, once the event begins, you can really only care about two things: the prizes you place and the risk that you take. You don’t have time to take advantage of a last minute custom, you have to play the hand that is dealt to you.
And you can play this hand in many ways. Modeling for multi-market live sports is complex, especially when the data isn’t always at your fingertips as is so often the case with esports, but that only complicates things when you have to consider a liability beyond your control, such as tracking the prices of competitors with liabilities that are likely very different from yours.
In-house trading solutions are increasingly expensive, especially for the level of resources required to achieve truly high-end risk management and content-rich operation. Some Tier 1 operators can and do choose to cover this expense, especially with the safety net of more recreational bettors. But, for those looking to free up those few percentage points that enable future growth, perhaps this could be an opportunity to look not at new products and expensive marketing campaigns, but at specialist partners who can add value by realizing existing potential.
Outsourcing some, if not all, of a bookmaker’s risk and trading functions is not a backward step against growth and accountability. Instead, it should be viewed as progressive, innovative, and rational. Optimizing trading solutions by working with those who specialize in them frees up internal resources, boosts earnings performance and builds brand trust through tailored pricing and fairer profiling.
In this time of uncertainty, we should better control what we can control, whether by reviewing our internal risk management strategies or by working with proven specialists. Going back to basics may not be trendy, but it works.
Sam Wright is the marketing manager for risk management specialists and esports experts Pinnacle Solution. Since joining the growing team in 2020, he has established a scalable marketing strategy for the B2B supplier as it expands its footprint into new global markets. Wright uses his first-hand knowledge gained in his previous career as an odds compiler to translate the complexities of first-class trading products into real benefits for trading partners.